Do they do it from the futures market (via spot price etc.), or directly from the companies (eg. BHP, RTP, Vale)?
Both. And if you do not agree with their prices during negotiations they arrest you for stealing state secrets. They also get Oil from some African countries like Sudan, so that they can make sure that any UN resolution on the Darfur Genocide is never passed. For the things they can not manufacture, they just pirate. Who cares and they have a ready market.
Makes sense. I’m trying to think up of some major companies that would be a more or less direct play on China’s commodities. Off the top of my hea, there’s of course the usual BHP, RTP and Vale. Also, Peabody (coal), Alcoa (aluminum) and Arcelor Mittal (steel). Any other major players I’m missing out? What about Agri companies (not too familiar with these…ADM?)
Add to those Russian (energy, metals), Kazakhstan (ENRC of what I know, metals) and Turkish companies (metals). They have coal, by the way, but they might buy it as well - too big a country. They also buy mines all over the world now. Agriculture is pretty self-sufficient in China (I guess so), it’s still a rural country. Actually it’s a biggest supplier in the world or agricultural products Why do you need to know this?